FERS contributions questions
Moderator: Aitrus
FERS contributions questions
I've got a few questions regarding my FERS contributions.
I'm grandfathered under the old 0.8% rate. If I take a job with another agency, will I have to start paying the newer 4+% rate that new hires have to contribute? Or do I stay at the grandfathered rate?
What about transferring to another job within the same agency?
What about if a RIF occurs and I get offered another position within the same agency?
Do these situations differentiate depending on whether or not it's at the same physical location / unit? Meaning, if I'm RIF'd / transferred within agency does it matter if I take an offered job locally or if it's a move across the country?
I'm grandfathered under the old 0.8% rate. If I take a job with another agency, will I have to start paying the newer 4+% rate that new hires have to contribute? Or do I stay at the grandfathered rate?
What about transferring to another job within the same agency?
What about if a RIF occurs and I get offered another position within the same agency?
Do these situations differentiate depending on whether or not it's at the same physical location / unit? Meaning, if I'm RIF'd / transferred within agency does it matter if I take an offered job locally or if it's a move across the country?
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Recommended Reading: http://tspcenter.com/forums/viewtopic.php?f=14&t=13474
"It's not what happens to you, but how you react to it that matters" Epictetus
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Re: FERS contributions questions
Not 100% but I think as long as your still under FERS, you will still contribute at 0.8.
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Re: FERS contributions questions
Aitrus wrote:I've got a few questions regarding my FERS contributions.
I'm grandfathered under the old 0.8% rate. If I take a job with another agency, will I have to start paying the newer 4+% rate that new hires have to contribute? Or do I stay at the grandfathered rate?
What about transferring to another job within the same agency?
What about if a RIF occurs and I get offered another position within the same agency?
Do these situations differentiate depending on whether or not it's at the same physical location / unit? Meaning, if I'm RIF'd / transferred within agency does it matter if I take an offered job locally or if it's a move across the country?
I've asked this same question within my agency. Note that most are utterly incompetent at HR, so the response is not necessarily trustworthy (I'm not knocking HR, they just have a turnover that is unbelievable). I was told that if I was "promoted" that I would retain my old FERS situation, like yours that's 0.8%. I was also told that if I moved to another agency within the government that I would still retain that situation. On the other hand, I was told that if the government's budget proposals (a.k.a. Trump) go through, then I can stay or go, because they would apply to all current and future employees.
Best,
Me
Re: FERS contributions questions
No, it's based on your initial hiring date for Federal Service. Or rather the date you first enrolled in FERS. That will never change.Aitrus wrote:I've got a few questions regarding my FERS contributions.
I'm grandfathered under the old 0.8% rate. If I take a job with another agency, will I have to start paying the newer 4+% rate that new hires have to contribute? Or do I stay at the grandfathered rate?
What about transferring to another job within the same agency?
What about if a RIF occurs and I get offered another position within the same agency?
Do these situations differentiate depending on whether or not it's at the same physical location / unit? Meaning, if I'm RIF'd / transferred within agency does it matter if I take an offered job locally or if it's a move across the country?
Here is the law that changed it to 3.1% the first time and its wording is similar to the Bipartisan Budget Act of 2013 that changed it to 4.4%, it's on page 45.
https://www.congress.gov/112/plaws/publ ... publ96.pdf
So if you are contributing 0.8% now, it will not change no matter what. Even if you have a break in service.the term ‘revised annuity employee’ means any individual who—
‘‘(A) on December 31, 2012—
‘‘(i) is not an employee or Member covered under
this chapter;
‘‘(ii) is not performing civilian service which is
creditable service under section 8411; and
‘‘(iii) has less than 5 years of creditable civilian
service under section 8411; and
OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February. - Pudd'nhead Wilson's Calendar
Re: FERS contributions questions
Got it. Thanks for the information, guys.
Seasonal Musings 2022: viewtopic.php?f=14&t=19005
Recommended Reading: http://tspcenter.com/forums/viewtopic.php?f=14&t=13474
"It's not what happens to you, but how you react to it that matters" Epictetus
Recommended Reading: http://tspcenter.com/forums/viewtopic.php?f=14&t=13474
"It's not what happens to you, but how you react to it that matters" Epictetus
Re: FERS contributions questions
Aitus...sound like you are having some employment issues where you are. I hope everything works out for you.
Re: FERS contributions questions
As long as you you don't have a brake in Federal Service, I don't think you have a problem. People don't realized it, but Federal retirement is now a 4 tier system! Be careful folks.
Re: FERS contributions questions
How's that?jimcasada wrote:People don't realized it, but Federal retirement is now a 4 tier system! Be careful folks.
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Re: FERS contributions questions
It is 3 tier system, as far as I know. TSP/Annuity/Social Security. What did you see change on OPM?jimcasada wrote:As long as you you don't have a brake in Federal Service, I don't think you have a problem. People don't realized it, but Federal retirement is now a 4 tier system! Be careful folks.
-What we do in Life, echoes in Retirement-
Re: FERS contributions questions
I think he means the different FERS contribution percentages and CRSC.Billionair wrote:It is 3 tier system, as far as I know. TSP/Annuity/Social Security. What did you see change on OPM?jimcasada wrote:As long as you you don't have a brake in Federal Service, I don't think you have a problem. People don't realized it, but Federal retirement is now a 4 tier system! Be careful folks.
OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February. - Pudd'nhead Wilson's Calendar
Re: FERS contributions questions
First, you have those under the old CSRS system. Next, you have the original FERS folks whom pay in .8%, like me. Then in 2012, for a short while they raised it to 3.1%. Fourth & lastly, they changed it to the current rate for new hires, which is 4.4%. And, that's how the Federal retirement frog gets boiled. Please support your unions!
Re: FERS contributions questions
Nothing for sure yet, but there's the possibility of stormclouds on the horizon. Just getting my ducks lined up in a row and hedging my bets a bit.evilanne wrote:Aitus...sound like you are having some employment issues where you are. I hope everything works out for you.
It's nothing to do with my job performance, oversight of the unit and mission is changing from strictly AF / DoD to the Defense Health Agency. This is a new creature recently created by Congress, and we're not sure how the dice are going to fall yet. My position is one of those that has far more questions than it has answers at this stage in the game.
Seasonal Musings 2022: viewtopic.php?f=14&t=19005
Recommended Reading: http://tspcenter.com/forums/viewtopic.php?f=14&t=13474
"It's not what happens to you, but how you react to it that matters" Epictetus
Recommended Reading: http://tspcenter.com/forums/viewtopic.php?f=14&t=13474
"It's not what happens to you, but how you react to it that matters" Epictetus
Re: FERS contributions questions
Interesting Aitrus. DHA is offshoot from BRAC/Joint Basing and very political. We have a lot of duplication of effort with the different services--going purple make sense with many activities but sometimes I think they are just stirring the pot rather than actually streamlining things.
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